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Accounting II
Chapter 14
23
Accounting
Undergraduate 2
02/05/2008

Additional Accounting Flashcards

 


 

Cards

Term
Accumulated other comprehensive income
Definition
The cumulative effects of other comprehensive income items reported separately in the stockholders' equity section of the balance sheet. 620
Term
Available-for-sale securities
Definition
Securities that management expects to sell in the future but which are not actively traded for profit. 622
Term
Business combinations
Definition
A business making an ivestment in another business by aquiring a controlling share, often greater than 50%, of the outstanding voting stock of another corpration by paying cash or exchanging stock. 627
Term
Comprehensive income
Definition
All changes in stockholders' equity during a period, except those resulting from dividends and stockholders' investments. 620
Term
Consolidated financial statements
Definition
Financial statements resulting from combining parent and subsidiary statements. 627
Term
Discontinued operations
Definition
Operations of a major line of business or component for a company, such as a division, a department, or a certain class of customer, that have been disposed of. 617
Term
Earnings per common share (EPS)
Definition
Net income per share of common stock outstanding during a period. 619
Term
Equity method
Definition
A method of accounting for an inverstment in common stock by which the investment account is adjusted for the investor's share of periodic net income and cash dividends of the investee. 625
Term
Equity securities
Definition
The common and preferred stock of a firm. 622
Term
Extraordinary item
Definition
Events and transactions that (1) are significantly different (unusual) from the typical or the normal operating activites of a business and (2) occur infrequently. 618
Term
Fixed asset impairment
Definition
A condition when the fair value of a fixed asset falls below its book value and is not expected to recover. 615
Term
Investments
Definition
The balance sheet caption used to report long-term investments in stocks not inteded as a source of cash in the normal operations of the business. 625
Term
Other comprehensive income items
Definition
Specified items that are reported separately from the net income, including foreign currency items, pension liability adjustments, and urealized gains and losses on investments. 620
Term
Parent company
Definition
The corporation owning all or a majoriety of the voting stock of the other corporation. 627
Term
Permanent differences
Definition
Differences between taxable and income (before taxes) reported on the income statement that may arise because certain revenues are exempt from tax and certain expenses are not deductable in dertemining taxable income. 613
Term
Price-earnings ratio
Definition
The ratio computed by dividing a corporation's stock market price per share at a specific date by the company's annual earnings per share. 628
Term
Restructuring charges
Definition
The costs associated with invluntarily terminating employees, terminating contracts, consolidating facilities, or relocating employees. 616
Term
Subsidiary company
Definition
The corporation that is controlled by a parent company.
Term
Taxable income
Definition
The income according to the tax laws that is used as a base for determining the amount of taxes owed. 611
Term
Temporary differences
Definition
Differences between taxable income and income before income taxes, created because items are recognized in one period for tax purposes and in another period for income statement purposes. Such differences reverse or turn around in later years. 612
Term
Temporary investments
Definition
The balances sheet caption used to report investments in income-yielding securities that can be quickly sold and converted to cash as needed. 622
Term
Trading securities
Definition
Securities that management intends to actively trade for profit. 622
Term
Unrealized holding gain or loss
Definition
The difference between the fair market value of the securities and their cost. 623
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